Farmers & Merchants Bancorp (NASDAQ:FMAO) Posts Earnings Results

Key Points

• Farmers & Merchants Bancorp exceeded quarterly expectations, reporting EPS of $0.86 versus the $0.67 consensus estimate and revenue of $34.35 million versus $33.05 million expected. Net margin was 18.54%, while return on equity reached 9.85%.
• The stock rose 0.8% to $31.20, near its 52-week high of $32.00. The company paid a quarterly dividend of $0.23 per share, equivalent to an annualized $0.92 dividend and a 2.9% yield.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and a $30.25 target price; one analyst rates the stock Buy and three rate it Hold. Insiders sold 66,825 shares over the past quarter, while institutional investors own 23.96% of the company.

Farmers & Merchants Bancorp (NASDAQ:FMAO - Get Free Report) issued its quarterly earnings data on Monday. The financial services provider reported $0.86 EPS for the quarter, topping analysts' consensus estimates of $0.67 by $0.19, FiscalAI reports. Farmers & Merchants Bancorp had a net margin of 18.54% and a return on equity of 9.85%. The business had revenue of $34.35 million during the quarter, compared to analysts' expectations of $33.05 million.

Farmers & Merchants Bancorp Trading Up 0.8%

FMAO stock traded up $0.25 during mid-day trading on Monday, reaching $31.20. 57,284 shares of the stock traded hands, compared to its average volume of 63,705. The company has a debt-to-equity ratio of 0.58, a quick ratio of 0.98 and a current ratio of 0.98. Farmers & Merchants Bancorp has a one year low of $22.77 and a one year high of $32.00. The stock has a market capitalization of $429.56 million, a PE ratio of 11.95 and a beta of 0.81. The business has a 50-day moving average price of $29.17 and a two-hundred day moving average price of $27.37.

Farmers & Merchants Bancorp Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, July 20th. Shareholders of record on Friday, July 10th were paid a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend was Friday, July 10th. Farmers & Merchants Bancorp's payout ratio is presently 35.25%.

Insider Buying and Selling at Farmers & Merchants Bancorp

In other news, Director Andrew J. Briggs sold 3,000 shares of the firm's stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $29.52, for a total value of $88,560.00. Following the completion of the sale, the director owned 129,550 shares in the company, valued at approximately $3,824,316. This trade represents a 2.26% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders have sold a total of 66,825 shares of company stock valued at $1,905,432 over the last quarter. Corporate insiders own 7.30% of the company's stock.

Institutional Trading of Farmers & Merchants Bancorp

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in FMAO. Royal Bank of Canada grew its stake in shares of Farmers & Merchants Bancorp by 124.6% during the fourth quarter. Royal Bank of Canada now owns 1,159 shares of the financial services provider's stock valued at $28,000 after buying an additional 643 shares during the last quarter. CANADA LIFE ASSURANCE Co purchased a new stake in shares of Farmers & Merchants Bancorp in the fourth quarter worth approximately $34,000. BNP Paribas Financial Markets lifted its stake in shares of Farmers & Merchants Bancorp by 36.0% during the 2nd quarter. BNP Paribas Financial Markets now owns 1,924 shares of the financial services provider's stock worth $49,000 after acquiring an additional 509 shares during the last quarter. Tower Research Capital LLC TRC lifted its stake in shares of Farmers & Merchants Bancorp by 948.7% during the 2nd quarter. Tower Research Capital LLC TRC now owns 4,436 shares of the financial services provider's stock worth $112,000 after acquiring an additional 4,013 shares during the last quarter. Finally, Integrated Quantitative Investments LLC purchased a new position in Farmers & Merchants Bancorp during the 4th quarter valued at $207,000. 23.96% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of research analysts recently commented on FMAO shares. Hovde Group lowered their price target on shares of Farmers & Merchants Bancorp from $30.00 to $28.50 and set a "market perform" rating for the company in a report on Friday, April 24th. Weiss Ratings raised Farmers & Merchants Bancorp from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, June 18th. Finally, Piper Sandler restated a "neutral" rating and set a $32.00 price objective (up from $28.50) on shares of Farmers & Merchants Bancorp in a research report on Thursday, June 25th. One analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, Farmers & Merchants Bancorp presently has a consensus rating of "Hold" and a consensus target price of $30.25.

About Farmers & Merchants Bancorp

Farmers & Merchants Bancorp NASDAQ: FMAO is the bank holding company for Farmers & Merchants Bank of Central California, a community-focused institution headquartered in Los Banos, California. The bank traces its roots to 1916 and has grown to serve individuals, businesses and agricultural enterprises throughout the western San Joaquin Valley. Operating with a commitment to local decision-making, the company emphasizes personalized service and close ties to the communities in which it operates.

Through its banking subsidiary, Farmers & Merchants offers a comprehensive suite of financial products and services, including checking and savings accounts, certificates of deposit, online and mobile banking platforms, and merchant services.

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